A recent report prepared by the UMass Donahue Institute’s Economic & Public Policy Research Group provided an in-depth analysis of the economic impact of Encore Boston Harbor on the local region. The report, titled “Encore Boston Harbor, First Three and a Half Years of Operation: Economic Impacts Report,” reveals a complex picture of economic activity, job creation, and spending shifts.
According to the report, Encore Boston Harbor has been a significant economic player in the region, contributing billions in economic activity and creating thousands of jobs. However, it also indicates a notable shift in consumer spending.
The research forms a part of the Social and Economic Impacts of Gambling in Massachusetts (SEIGMA) study conducted by the University of Massachusetts Amherst School of Public Health & Health Sciences. SEIGMA is part of an ongoing effort to assess the social and economic impacts of casinos in the region, as mandated by the Expanded Gaming Act.
“Over my 40 years of experience in the gambling research field, this is really the most detailed look that we’ve got of what the economic impacts of a new casino are,” said UMass Professor Rachel Volberg, who participated in the study.
The report particularly focuses on the year 2022, marking the first full operational year of the casino without COVID-19 restrictions. The report used government and company data to assess the net positive impact on the state’s economy.
Cathy Judd-Stein, Chair of the Massachusetts Gaming Commission, praised the report as an excellent tool for understanding how gambling affects the Bay State. “Understanding the impact that Massachusetts casinos have on the economy, regional employment, and their patrons is essential for the commission to carry out our role overseeing and regulating expanded gaming in the commonwealth,” Judd-Stein said in a press release on the publishing of the report.
The research notes approximately $167.6 million in consumer spending shifting away from other local goods and services towards the casino. Despite this, the casino supported $1.1 billion in new personal income and $1.7 billion in new output within the Massachusetts economy.
The employment impact of the casino is also noteworthy, as Encore Boston Harbor employs 3,249 people directly. Including indirect impacts such as vendor spending and shifts in patron spending, an additional 6,592 jobs are attributed to the casino’s operations, totaling 9,867 jobs. Most of these jobs are located in the greater Boston metro region.
In terms of tax contributions, the report noted that since Encore Boston Harbor’s opening in 2019, the state has collected $401.9 million in tax revenues from the site. The 2011 Expanded Gaming Act, under which casino gambling was authorized in the state, channels a portion of these revenues to local aid and various state funds.
